Slide 1: Corporate Presentation 2nd Quarter 2022
CORPORATE PRESENTATION 2nd Quarter, 2022 August 9, 2022
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION 2 Cautionary Statement Regarding Forward-Looking Information Certain statements in this presentation may constitute "forward-looking information" or "forward-looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the act
Slide 3: Operations and Finance in Brief
OPERATIONS AND FINANCE IN BRIEF 3 • A public forestry company operating a sawmill complex and biomass power plant in Mackenzie, BC. • As at June 30, 2022, we reported: o Unrestricted cash balances of $40.4 million o An ABL facility with $15.0 million of undrawn availability primarily supported by in
Slide 4: Power Generation
POWER GENERATION 4 • Capacity is in excess of 230 gigawatt hours (GWh) of electricity per year, of which 200 GWh is sold under a fixed price contract to BC Hydro and 30 GWh is for internal consumption. • Electricity purchase agreement (EPA) and a related load displacement agreement (LDA) have been e
Slide 5: Lumber Manufacturing
LUMBER MANUFACTURING 5 • Operate a two-line sawmill complex equipped to handle large- and small-diameter logs with approximately 240 million board feet of lumber capacity on a two-shift annual basis. • Our main products are spruce, pine, fir (SPF) dimension lumber ranging in size from 2x4 to 2x10 in
Slide 6: Fibre, Residuals and People
FIBRE, RESIDUALS AND PEOPLE 6 • Our fiber sourcing includes access to a forest licence in the Mackenzie Timber Supply Area (TSA) with an allowable annual cut (AAC) of 632,500 cubic metres, and a 50% interest in a forest licence with an AAC of 300,000 cubic metres. • Fibre is the single largest input
Slide 7: Mackenzie Timber Supply Area
MACKENZIE TIMBER SUPPLY AREA 7 • Fourth largest TSA in the province, sparsely populated, situated in northeast BC, covering 6.4 million hectares. • The major tenure holders in the TSA are Canfor, BC Timber Sales, Conifex, and a company 50% owned by Conifex and Dunkley. Earlier in 2022, Canfor announ
Slide 8: Mackenzie Timber Supply Area
MACKENZIE TIMBER SUPPLY AREA 8 • A Timber Supply Review is underway, and the Chief Forester expects to release a new AAC determination late in 2022. • We anticipate that the new AAC determination will continue to support sawlog harvest levels that greatly exceed local sawlog consumption. • Most of t
Slide 9: Mackenzie TSA Coniferous Sawlog Supply and Demand
MACKENZIE TIMBER SUPPLY AREA 9 In July 2022, the BC Ministry of Forests (MOF) released its Public Discussion Paper (PDP) which provides up-to-date information about fibre availability and quality in the Mackenzie TSA. The PDP base case harvest projections are not AAC recommendations. Mackenzie TSA 3
Slide 10: Alignment with Stakeholder Objectives
ALIGNMENT WITH STAKEHOLDER OBJECTIVES 10 • The federal government has prioritized climate action and Indigenous peoples reconciliation. The province of BC has similar priorities. Conifex is doing its part to help governments achieve their objectives. • Since our inception as a public company, we hav
Slide 11: Responsible ESG Practices
RESPONSIBLE ESG PRACTICES 11 ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) CONSIDERATIONS https://www.conifex.com/main/sustainability/
Slide 12: Select Operating and Financial Information
SELECT OPERATING AND FINANCIAL INFORMATION 12 Continuing operations for the comparative periods primarily comprise operating results from our Mackenzie sawmill and power plant, and corporate costs. Selected Operating and Financial Information (1) In millions of dollars, unless otherwise noted Q2 202
Slide 13: Selected Financial Position Information
SELECTED FINANCIAL POSITION INFORMATION 13 Selected Financial Position Information In millions of dollars, unless otherwise noted Q2 2022 Q4 2021 Q2 2021 Cash and Cash Equivalents 40.4 6.4 35.8 Cash - Restricted 7.3 6.5 5.6 Operating Working Capital(1) 28.6 39.1 26.1 Liquidity 55.4 16.4 45.8 Net Cur
Slide 14: High Performance Computing
HIGH PERFORMANCE COMPUTING 14 • In November 2021, Conifex and Tsay Keh Dene First Nations entered into a milestone partnership agreement to develop a business hosting data center or other high-performance computing (HPC) customers. • We commenced hosting an initial 1.5 megawatts of capacity on a tri
Slide 15: Outlook for Second Half 2022
OUTLOOK FOR SECOND HALF 2022 15 • Outlook for Power Generation o We anticipate a recommencement of power production in the fourth quarter of 2022 at targeted rates. • Outlook for Lumber o We anticipate an active summer logging program and increased sawlog availability will support higher production.
Slide 16: Conifex Leadership Team
CONIFEX LEADERSHIP TEAM 16 Ken Shields, Chairman Winny Tang, CFO Andrew McLellan, VP/GM Trevor Pruden, VP & CEO Northern Operations Strategic Planning & Corporate Services For further Information, please contact: Investor Relations Winny Tang Chief Financial Officer (604) 216 –2949